Valiant Capital invests $ 15 Million in MFCWL

Mahindra First Choice Wheels Ltd. (MFCWL), India’s leading multi-brand used vehicle company, has signed a definitive agreement to raise $15 million (Rs. 94 crore) from San Francisco-based investment advisor firm, Valiant Capital for a minority stake in the company. This is the second round of external private equity raised by MFCWL with the first one in 2008 from Delhi based Phi Capital, which continues to be an investor in the company.

The company plans to use the fresh funds infusion to accelerate its growth both of the physical networks as well as adoption of its technology enabled products and services used by all stakeholders in the industry – Non-bank financial companies( NBFCs), Banks, Original equipment manufacturer (OEMs), dealers and consumers. MFCWL is planning to end this fiscal year (2015) with 500 franchise outlets and grow to 1,800+ outlets in the next five years. In addition, it plans to use the funds to broaden its reach for its products and services across other used vehicle categories.

(From L-R)  Rajeev Dubey, President- Group HR & After- Market and Member GEB, M&M Ltd, Dr. Nagendra Palle, CEO, MFCWL, Anand Mahindra, CMD, Mahindra Group.

MFCWL has experienced rapid growth in its retail, wholesale and technology enabled businesses. The capital will be used to fund its growth plans over the next few years. “MFCWL is yet another example of innovation and entrepreneurship within the group, where new business models are being explored and implemented with persistence. It is exciting to see marquee investors attracted to MFCWL and participating in its growth story where much is yet to come," says, Anand Mahindra, Chairman and Managing Director, Mahindra & Mahindra and Chairman of Mahindra First Choice Wheels.

Rajeev Dubey, President (Group HR, Corporate Services and After-Market) and Member of the Group Executive Board, Mahindra & Mahindra Ltd. says, “We believe the brick + click ecosystem is very powerful in the used car business and over the years we have seen our consumers and dealers appreciate this value proposition. We will continue to invest in the overall growth of the hybrid model in the years to come”.

“Consumers are looking for more tools and insight related to used vehicles. We are leveraging our deep wholesale and retail experience on the ground to launch a slew of technology enabled products that will materially increase the confidence with which they can transact on used vehicles – whether buying or selling,” says Dr. Nagendra Palle, CEO and Managing Director, MFCWL.